Business and Economics Glossary: Key Terms for Term 1, Quizzes of Introduction to Business Management

Download Business and Economics Glossary: Key Terms for Term 1 and more Quizzes Introduction to Business Management in PDF only on Docsity! TERM 1 business plan DEFINITION 1 A detailed written statement that describes the nature of the business, the target market, the advantages the business will have in relation to competition, and the resources and qualifications of the owners TERM 2 venture capitalists DEFINITION 2 Individuals or companies that invest in new businesses in exchange for partial ownership of those businesses TERM 3 incubators DEFINITION 3 Centers that offer new business low-cost offices with basic business services TERM 4 liability DEFINITION 4 What the business owes to others (debt) TERM 5 limited liability company (LLC) DEFINITION 5 A partnership that limits partners risk of losing their personal assets to only their own acts and omissions and to the acts and omissions of people under their supervision TERM 6 acquisition DEFINITION 6 One companies purchase of the property and obligations of another company TERM 7 leveraged buyout DEFINITION 7 An attempt by employees, management, or a group of investors to purchase an organization primarily through borrowing TERM 8 vertical merger DEFINITION 8 The joining of two companies involved in different stages of related business TERM 9 horizontal merger DEFINITION 9 The joining of two firms in the same industry TERM 10 conglomerate merger DEFINITION 10 The joining of firms in completely unrelated industries TERM 21 importing DEFINITION 21 Buying products from another country TERM 22 licensing DEFINITION 22 A global strategy in which a firm allows a foreign company to produce its product in exchange for a fee (a royalty) TERM 23 trade protectionism DEFINITION 23 The use of government regulations to limit the import of goods and services TERM 24 supply DEFINITION 24 The quantity of products that manufacturers or owners are willing to sell at different prices at a specific time TERM 25 demand DEFINITION 25 The quantity of products that people are willing to buy at different prices at a specific time TERM 26 market price DEFINITION 26 The price determined by supply and demand TERM 27 monopoly DEFINITION 27 A degree of competition which only one seller controls the total supply of a product or service, and sets the price TERM 28 recession DEFINITION 28 Two or more consecutive quarters of decline in the GDP TERM 29 depression DEFINITION 29 A severe recession usually accompanied by deflation TERM 30 fiscal policy DEFINITION 30 The federal governments efforts to keep the economy stable by increasing or decreasing taxes or government spending TERM 31 monetary policy DEFINITION 31 The management of the money supply and interest rates by the Federal Reserve Bank TERM 32 unemployment rate DEFINITION 32 The number of civilians at least 16 years old who are unemployed and tried to find a job within the prior four weeks TERM 33 GDP DEFINITION 33 The total value of final goods and services produced in a country in a given year TERM 34 capitalism DEFINITION 34 An economic system in which all or most of the factors of production and distribution are privately owned and operated for profit TERM 35 socialism DEFINITION 35 An economic system based on the premise that some, if not most, basic business should be owned by the government so that profits can be more evenly distributed among the people